Commentary

Traders Magazine Online News

Spoofing, Surveillance and Supervision

Jay Biondo, Product Manager - Surveillance at Trading Technologies, co-authored an article along with James Lundy and Nicholas Wendland, both of Drinker Biddle & Reath LLP, reviewing the CFTC's regulations and expanding efforts, 21st century surveillance and supervision, as well as strategic recommendations.

Traders Poll

Is the adoption of electronic trading in fixed income on par of that in the FX sector?




Free Site Registration

November 17, 2011

Goldman Goes Redline

By John D'Antona Jr.

Redline Trading Solutions, a provider of high-speed trading products for high-frequency traders, was chosen by Goldman Sachs as the national best bid and offer data provider for matching trades in the broker's Sigma X dark pool.

Redline's ticker plant, dubbed InRush, is providing the dark pool with NBBO data for Sigma X in as little as five microseconds.

Most matching engines currently match based on the SIP feeds, which are consolidated at the exchange and have been measured at a millisecond.

According to Redline chief executive Mark Skalabrin, InRush reduces delays by calculating the NBBO from direct connections to the major exchanges in a single-server trading platform. By doing this, InRush eliminates the need for multiple levels of data redistribution, thus speeding up the NBBO calculation.

"With InRush, Goldman's clients benefit from receiving an ultra-low-latency NBBO calculation for every symbol on the wire," Skalabrin said.

He added that InRush's data capabilities were also fast enough to meet Goldman's requirement to prevent others, such as high-frequency traders, from having the time to predict or calculate the price movements based on other venues and thus take advantage of latency arbitrage opportunities.

 


(c) 2011 Traders Magazine and SourceMedia, Inc. All Rights Reserved.
http://www.tradersmagazine.com http://www.sourcemedia.com/